That can't be right, Nintendo (as far as i'm aware) don't charge close to twice the price of a console to simply take the faulty machine, then refund it if it's in warranty. Nothing gone wrong so far, and if it does (and they try this) i will not be happy, and i'll wait for PS4's to become readily available before getting another one.
GAME did try to get me with the one off £50 cost to give it it's "extended" warranty which covers all damage, didn't go for it. Didn't see the point to be honest, last time i took out anything extra the company didn't honour it.
Got the US Netflix going on the PS4, nice to be able to watch it again on the big screen.